Argentina Farmland Prices continue to Fall

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Argentina Farmland Prices continue to Fall

With the fall in soya and beef prices farm incomes have dropped. Naturally just as farm prices rose due to record crop and beef prices they are now dropping for the same reason. It is now a buyers market and prices are 25% to 30% lower than at their peak. The mixture of an oppressive taxes (30% additional export tax for farmers) and lower international prices have damaged profitability from a previous 6% to 8% to less than 3% for some.

In Argentina prized Nucleus Region around Pergamino in Buenos Aires Province which contains some of the best soil in the world with good access to the ports and a reliable rainfall land prices have dropped from their peak of around USD 18,000 to USD 20,000 per hectare to USD 14,000 to USD 15,000 per hectare. For the first time prime farmland in Argentina top locations is now half the price of comparable farmland in United States.

In the cattle regions (poorer soils and remote locations) the story is the same with cattle land now selling for as low as USD 2,000 per hectare.

Whilst this is depressing news for those who purchased in 2010 and 2011 when prices peaked there is a an air of optimism that next years elections will bring a new broom to the current restraints to profitability. We have had more enquiries for Argentine farmland in the past two months than we have in the past three years.

Contact the Gateway to South America team to learn about the best investment opportunities in the region. The company is a benchmark for foreign investors wishing to invest in Argentina, Brazil, Chile, Paraguay, Peru and Uruguay, providing expert advice on property acquisition and investment tours.

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